My bankruptcy was discharged almost 4 years ago and my wife and I have worked hard to restore our credit to just over 700. We have little debt now, own a home (mortgage at $70K) and I have a stable job at $110K per year.

Now we want to finance a new rv and our credit union is quoting us 9.75% for a $82,500 rv loan on a new unit that is costing us $95K with an MSRP of $122K. And, we work hard to negotiate this price.

It seems to me that, even with a 4 year old bankruptcy history, we should be able to get a better deal. Yet I hate to be applying all over the place, as the more you apply and get credit checks the more you run the risk that this will drive your score down, which I cannot afford to happen, as I do not want my score to suddenly drop below 700. 700 seems to be a threshold with a lot of banks.

Is it hopeless to get a better rate? Any suggestions from the forum would be greatly appreciated. Thanks!

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Maybe forget the credit union and apply at a mainstream bank. If the credit unions are anything like they are in Canada, they are very anal, very conservative, extremely inflexible, and just not up to what a regular bank can do. Give TD bank a try for example. They are Canadian owned and we have banked there for quite a while and I think you have them everywhere now. Best bank I've ever had. I tried a CU once, and never again. Idiots...

Don't use the RV as collateral. That's going to be higher even if you have good credit. Banks don't "like" financing RVs because of the risk. They depreciate fast and they could have trouble finding you if they had to to repossess. Use your own home for collateral and you will get the best rates. It may make some nervous, but at the end of the day, interest is interest. Why pay more in the long run? DW is an accountant and that's what she would recommend.

If you haven't been, you can do things like getting a credit card or two somewhere and paying it off on time regularly so you prove you are good. Places like Home Depot for example will give you a small limit to start and they'll increase it as time goes by. Make sure there's no errors on your credit report. Happens all the time. If you do have some credit with some companies, not all report it and apparently with some, you can ask them to report your credit. Maybe you've done these though. Repairing a damaged credit history takes time and work and there are some things you can do. Probably different in the US, but I'm sure some things are the same. I went through a divorce 12+ years ago and ended up with a battered credit report. Took years and a lot of work to recover and you wouldn't be able tell now. Might be that you just have to tough it out for a while yet and wait for the RV you want. Maybe just get something else new or used for a lot less in the meantime? Don't forget that if you pay $82.5K for a new unit, in the first year or two, the value will plummet from depreciation and if you did happen to want to sell it for any reason (trading up or down, or just getting out), you'll lose a ton of money. It's quite common for RV-ers to resell within the first few years and move to something different. If this is your first RV, maybe you want to rethink strategy a bit? We're about to get our third RV in 3 years yet swore up and down the first one was it forever...

When we purchased our RV this past year and sat down with the finance manager at the dealership. One of the first things he asked us to determine our credit or where he would send our loan through was: "Have you ever had a bankruptcy?". We said no and then he proceeded with the application. So I am not sure if they ask everyone this in order to qualify for the dealerships lenders or what. With a score of 700 that is really good. However note that various credit bureaus use slightly different score. We have used creditkarma.com for a couple years now. Heard about if from Dave Ramsey. It is free and gives you instant information on everything in your credit. Very good tool! A report card that breaks down several aspects of your credit to see a lot of information and trends. Might be worth your while to take some time and see what's the scoop.
In regard to applying with various lenders, you are correct, you do not want multiple hard inquires on your credit. The nice thing also with creditkarma is it will also show you how many inquiries are on your report. Months it happened, who ran it and so on.
I hope this helps you and things will work out. Jim

I don't think the fact that there was a bankruptcy goes away in four years in a credit report. Thought it was seven, maybe more. The 700 number surprises me as well...not questioning your post, but the credit scoring is also something where they have one number for you to try to get you to pay for their monthly"monitoring service", and another for banks and credit unions. First thing is to ask the CU that "offers" you 9.75% for the precise credit score that the interest rate was based.

Next, if you're offering 10% down, the loan at a low interest rate is not as appealing, as you are buying an asset that depreciates 20-30% when you drive it off the lot. Banks and CUs know you'll be upside down immediately. If you offer 30% down, you may get a better rate.

Dave/Beth make a good point. Price you had negotiated may appear to be higher than what the CU sees in value. Ever wonder why dealerships want to sell you GAP insurance? It's because the minute you drive off the lot your rig is suddenly worth less.
Even thought GAP insurance usually is not that expensive. Notice how you can get a lower interest rate suddenly it you take GAP? I have had family and friends experience this on new vehicle loans. I would guess the same applies on RV's not positive. I would think a down payment would make quite a difference.

Good to know Costco does financing. DW looked just now, they have teamed up with another lender Essex. Just do a google search Costco RV financing and it will give you the information. Other lenders who specialize in RV's like Good Sam might be an option for you as well. Didn't the dealership have suggestion for you? Or at least offer to help you with this? After all, it is there self interest to make the sale and the Finance Manager should be the pro in getting it put together.

My bankruptcy was discharged almost 4 years ago and my wife and I have worked hard to restore our credit to just over 700. We have little debt now, own a home (mortgage at $70K) and I have a stable job at $110K per year.

Now we want to finance a new rv and our credit union is quoting us 9.75% for a $82,500 rv loan on a new unit that is costing us $95K with an MSRP of $122K. And, we work hard to negotiate this price.

It seems to me that, even with a 4 year old bankruptcy history, we should be able to get a better deal. Yet I hate to be applying all over the place, as the more you apply and get credit checks the more you run the risk that this will drive your score down, which I cannot afford to happen, as I do not want my score to suddenly drop below 700. 700 seems to be a threshold with a lot of banks.

Is it hopeless to get a better rate? Any suggestions from the forum would be greatly appreciated. Thanks!

To start, you will have a red light on your head for some time to come in your life when dealing with financial institutions. After the market collapse in 08' they all were hung with bankruptcy, defaulting on payments, foreclosure's, and on and on ........ today, they are starting to loosen their reins again.........4 years ago is not a very long time frame based on your life events........as you know now, what happened to you, is the very last thing in this world, under no circumstances do you ever what to have bad credit.......if not buying with CASH.......... you are going to pay through your nose if borrowing money......Like others posted, I am surprised that you can even get a loan today, and that interest rate does not seem bad considering....... The only thing that is going to correct your financial situation and credit score is time.......a long time. Using a credit card and paying it in full is a good way to help your score along with other on time payments that you have. Good luck.....

We have financed our various motorhomes through both banks and credit unions. Last time we had to join a new credit union. Our credit union wanted 7.5% and max 84 months. The new credit union offered up to 240 months at rates below 5%.

Banks and Credit Unions are always looking at their portfolios and trying to adjust them for maximum profit/minimum risk. Three years ago our dealership was writing about 90% of their loans through Bank A. All of a sudden Bank A's rates went up and it was hard to qualify for loans. Not a problem, Bank B decided financing RVs was a good business and the dealership started writing loans with Bank B.

Talk with the finance manager at the dealership. He will know what current rates are from various lenders and should be able to suggest the best deal for you. He will be motivated to get you financing and should have a lot of experience with the best lenders for your circumstances.